Morning Outlook – Stop Triggered

We are trading below our stop this morning, which was around 3915 on the S&P futures contract last night. Sellers were conspicuously absent yesterday, so if you did not trigger an overnight stop, yesterday’s low at 3696.50 is the most important key level for today’s trade and the level I will monitor to exit the market intraday, as opposed to waiting for the close. A breach of 3696.50 puts the balance area low at 3828.75 into play while remaining above 3696.50 tells us the market is remaining in balance and still looking for more information.

So stay tuned for alerts today, as a breach 3696.50 is a potential gateway to further weakness towards the balance area low at 3828.75. If we stay above that level, prices should be seen as balancing to higher. Responsive trading (moving through our usual conditions testing overnight highs and lows and yesterday’s highs and lows) may well the be best course of action today as there seem to be competing biases right now. Remember, if we go down and come back up through the open, screens go green.

A.F. Thornton